What Role for Innovation in Job Creation, Destruction and Churning?
24 Pages Posted: 24 Sep 2019
Date Written: September 15, 2019
This paper explores the effects of product innovation, process innovation and R&D expenditure on job creation, job destruction and churning. The results indicate that product innovation tends to amplify both job creation and destruction, while R&D tends to work in the opposite direction. We also find that churning increases as firms engage in R&D activities, while it decreases when firms introduce product and/or process innovations.
Keywords: product innovation, process innovation, R&D expenditure, job creation, job destruction, churning
JEL Classification: J63, M51, O31, F14
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